Pricing Research Case Study

Our client is a leading manufacturer of health care products for women. They were bringing a product that had previously been prescription-only into the Over-The-Counter arena. Initially, the plan was to price the product at parity with similar competitive products. However, marketing management wondered if, because they were such a prominent manufacturer with strong brand equity in a related category, they could charge a premium for this product.

Originally planned for $3.99 per package, we tested four additional prices – $4.99, $5.99, $6.99, and $7.99.

The results show that the brand name and efficacy potential made the product’s price inelastic – the client could charge as much as $6.99 before seeing a drop-off in sales.

The product rolled out at $5.99 and came within a few percentage points of the Year 1 sales forecast. This research let our client make $2.00 per package in EXTRA profit.

To learn more about how 4D Shopper works, click here

Leave a Reply